Mercedes lease car agreements

[p4lny]

Posting on behalf of a friend;

Does the same apply to lease agreements as hire purchase agreements as in the 50% rule in which you can hand the car back once the agreement has passed half way?

Or are set term lease agreements regulated differently to ones where you pay a monthly fee then a baloon payment at the end?

Thanks.

[mattviatura]

What do you mean by "Lease"?

The word is used generically to refer to many different types of contract.

[Roo]

If it's a proper lease agreement you are liable for all the payments, even if you try to get out of it early.

[mattviatura]

Depends what you mean by "proper lease". Most of the contracts I've supplied over the last twelve years have had early term get outs.

[Tiggsy]

merc have TWO options - one is a lease, one is a contract hire - one offers the deal you describe, one doesnt.

[mattviatura]

OP you're on dodgy ground here, try and find out exactly what sort of contract your friend has signed and someone'll be able to advise you properly.

Mercedes dealers offer more than one finance facility, what does it say on the document? Did your friend sign in a business or personal capacity and what is the actual finance company named on the document?

[rfoster]

As above - check the agreement. If it's an operating lease or contact hire agreement then the '50% of total payments & hand it back' clause is not valid - this is only available for regulated conditional sale agreements. On such an agreement it will show you your rights and outline the termination clauses.